Online Tool Store
Inventory Turnover Calculator
Calculate inventory turnover and days sales of inventory from cost of goods sold and average stock, with a read on what the ratio implies.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Finance
Inventory Turnover Calculator
Frontend preview — no upload or external service.
Turnover result
COGS 480,000 with average inventory 80,000 gives a turnover of 6.0 times a year, or 61 days of stock on hand.
How the Inventory Turnover Calculator works
- Use cost of goods sold, not revenue — mixing the two inflates the ratio by your entire margin.
- Average the opening and closing inventory rather than using a single point.
- Compare the days figure against your supplier lead time; stock cover below lead time means stockouts are inevitable.
The method
Turnover is how many times average inventory is sold and replaced in a period; days sales of inventory converts that into how long stock sits.
turnover = COGS / average inventory; DSI = 365 / turnover
480,000 over an average 80,000 gives 6.0 turns and 61 days — meaning stock sits about two months before selling.
FAQ
Is a high turnover always good?
No. Very high turnover with frequent stockouts means lost sales, not efficiency. The useful comparison is against your lead time and your own history, not a universal target.
Why use COGS rather than sales?
Because inventory is carried at cost. Dividing sales by inventory at cost mixes two different bases and overstates turnover by the gross margin.
What is a normal figure?
It varies enormously — a grocer turns stock dozens of times a year, a jeweller two or three. Only compare within a sector.
How we compare
| Feature | Online Tool Store | A spreadsheet | An advisor consultation |
|---|---|---|---|
| Turnover and DSI together | ✓ | Formula needed | ✓ |
| Uses average inventory | ✓ | Manual | ✓ |
| No accounting login | ✓ | ✓ | ✗ |
| Nothing stored | ✓ | ✓ | ✗ |
Inventory Turnover Calculator reports days on hand alongside the ratio, because the days figure is the one you can compare against a supplier's lead time.